The following excerpt is from the company's SEC filing.
Ocala, FL September 14, 2017Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its third quarter ended August 5, 2017. Sales for third quarter 2017 were $8,906,385 as compared to $9,779,621 recorded in third quarter 2016. Sales declined due to a significant amount of rain during the quarter which delayed the completion of construction, ultimately delaying fundings at Prestige. Additionally, the increase in business, industry wide, has placed pressure on the limited capacity of
necessary for the site-work portion of the construction of our homes. Our re tail sold homes under construction in the field increased 123% over the third quarter last year. Income from operations was $934,864 versus $1,240,492 last year. Net income after taxes was $669,883 as compared to $894,271 last year. In the third quarter of 2017 we received payment under an escrow arrangement related to the finance revenue sharing agreement between 21
Mortgage Corporation and the Company of $72,867. Diluted earnings per share were $0.17 compared to $0.22 per share last year.
For the first nine months of fiscal 2017, sales were up 9% to $27,525,855 as compared to $25,269,511 for the first nine months of 2016. Income from operations was up 3% to $3,267,938 versus $3,170,102 last year. Net income after taxes was $2,480,715 compared to $5,244,553 last year. In the second quarter of 2016 the Company sold its limited partnership interest in CRF III, Ltd. (Cypress Creek), a retirement community which resulted in a gain of $3,990,000 and also received revenue of $788,566 under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21
Mortgage Corporation, Prestige Home Centers, Inc. and Majestic Homes, Inc. Diluted earnings per share were $0.62 per share compared to $1.30 per share last year.
Nobilitys financial position for the first nine months of 2017 remains very strong with cash and cash equivalents and short term investments of $26,237,802 and no outstanding debt. Working capital is $35,238,837 and our ratio of current assets to current liabilities is 8.9:1. Stockholders equity is $46,588,232 and the book value per share of common stock outstanding increased to $11.65.
Terry Trexler, President, stated, The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through July 2017 were up approximately 7% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many manufactured housing buyers from purchasing affordable manufactured homes.
Our manufacturing facility was not damaged by Hurricane Irma. In fact, none of our model homes displayed at our Prestige Model Centers suffered any damage; not even the ones in Punta Gorda, near where the storm made landfall on the Florida peninsula. This is another testament to the strength of todays manufactured homes.
Our many years of experience in the Florida market, combined with home buyers increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.
On June 5, 2017 the Company celebrated its 50
anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, we are the only vertically integrated manufactured home company headquartered in Florida.
MANAGEMENT WILL NOT HOLD A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL TERRY OR TOM TREXLER @
EXT 221 OR
Certain statements in this report are forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, competitive pricing pressures at both the wholesale and retail levels, increasing material costs, uncertain economic conditions, changes in market demand, changes in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, reliance on the Florida economy, possible labor shortages, possible materials shortages, increasing labor cost, cyclical nature of the manufactured housing industry, impact of fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, managements ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.
NOBILITY HOMES, INC.
Consolidated Balance Sheets
Cash and cash equivalents
Accounts receivable - trade
Mortgage notes receivable
Property held for sale
Prepaid expenses and other current assets
Deferred income taxes
Total current assets
Property, plant and equipment, net
Note receivable, less current portion
Mortgage notes receivable, less current portion
Cash surrender value of life insurance
Liabilities and Stockholders Equity
Accrued expenses and other current liabilities
Income taxes payable
Total current liabilities
Commitments and contingent liabilities
Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding
Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued
Additional paid in capital
Accumulated other comprehensive income
Less treasury stock at cost, 1,367,338 shares in 2017 and 1,361,300 shares in 2016
Total stockholders equity
Total liabilities and stockholders equity
Consolidated Statements of Income and Comprehensive Income
Three Months Ended
Nine Months Ended
Cost of goods sold
Selling, general and administrative expenses
Undistributed earnings in joint venture - Majestic 21
Proceeds received under escrow arrangement
Gain on sale of investment in retirement community
Total other income
Income before provision for income taxes
Income tax expense
Other comprehensive income (loss)
Unrealized investment gain (loss)
Weighted average number of shares outstanding:
Net income per share:
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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